WebTech Wireless Reports $492,000 of Profit on $4,734,000 Revenue
June 15, 2006 - WebTech Wireless Reports $492,000 of Profit on $4,734,000 Revenue
Burnaby, BC - June 15, 2006 - WebTech Wireless Inc. (TSX-V:WEW), a leading supplier of mobile telematics, today reported record revenue of $4.7 million for the third quarter ended April 30, 2006, an increase of 62% over revenue of $2.9 million for the prior comparable quarter. For the nine months ended April 30, 2006, the Company realized revenue of $11.35 million, representing growth of 61% over revenues of the prior comparable nine month period of $7.05 million.
Net income for the quarter was $492,000 ($0.01 per common share) compared with $142,000 ($0.00 per common share) for same quarter of the prior year. The Company reported a gross profit margin of 50.1% compared with 49.5% for the prior comparable period.
The Company reported net working capital of $18.1 million at the end of the quarter, up from net working capital of $5.0 million at the end the most recently completed fiscal year. The Company generated cash from operating activities (calculated as net income before stock based compensation expense and amortization) for the quarter of $627,000 compared with $288,000 for the third quarter of last year.
"Revenues for the quarter reflect our strategy to continue grow our business worldwide. We realized significant sales growth in Europe and the Middle East, primarily due to sales from our personal automotive division. We continued to deliver strong profit margins and net income due to careful management of this growth", comments Juliet Jones, Chief Financial Officer of WebTech Wireless Inc. "We recently announced commercial availability of a new suite of products and expect new product announcements in the coming months. Our strong balance sheet will enable us to continue to be a technology leader and to capitalize on our current market opportunities."
As previously announced, the Company will hold a conference call on June 15, 2006 at 2:00 PST (5:00 EST) and a recording of the conference call will be posted on the company's website at www.webtechwireless.com within 24 hours of the call. Conference call dial-in numbers are 416-641-6440 (international) or 1 (877) 871-9526 (local).
The Company's Financial Statements for the Three and Nine Months Ended April 30, 2006 are appended hereto . In addition, the Company's Financial Statements and accompanying notes, along with Management Discussion and Analysis, will be posted on the Company's website at www.webtechwireless.com prior to the conference call.
For further details, please view the Company's Financial Statements and Management Discussion and Analysis at www.sedar.com.
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